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Imp- Changes in IEC with the introduction of GST
 

 

CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)

Jhansi Castle 4th Fl., 7 Cooperage Road, Mumbai - 400 001.India.

Tel : +91 22 22021288 / * Fax : +91 22 22026684 *

E-mail : info@chemexcil.gov.in Web : https://chemexcil.in

 


EPC/LIC/IEC_GST          13th June 2017

 

TO ALL MEMBERS OF COUNCIL

 

Imp- Changes in IEC with the introduction of GST

 

Dear Members,

 

We draw your attention to an important Trade Notice No.09/2018 dated 12th June 2017  issued by DGFT regarding changes in IEC with the introduction of GST.

 

As you are aware, as per Foreign Trade Policy (Para 2.05),   Import Export Code (IEC) a 10 digit number, is mandatory for undertaking any import export activities. As on date PAN has one to one correlation with IEC.


However, with the implementation of the GST w.e.f. (the notified date), GSTIN would be used for purposes of (i) credit flow of IGST on import of goods, and (ii) refund or rebate of IGST related to export of goods. Registration No. under GST, called GSTIN, is a 15-digit alpha numeric code with PAN prefixed by State Code and suffixed by 3 digit details of business verticals of the PAN holder. As GSTIN will be used for the purposes mentioned above, it thereby assumes importance as identifier at the transaction level. In view of this, it has been decided that importer/exporter would need to declare only GSTIN (wherever registered with GSTN) at the time of import and export of goods. The PAN level aggregation of data would automatically happen in the system.


Since obtaining GSTIN is not compulsory for all importers/exporters below a threshold limit of turnover, all exporters/importers may not register with GSTIN [barring compulsory registration in certain cases as provided in section 24 of the Central Goods and Services Tax Act, 2017 (12 of 2017) or in cases where either credit is claimed of IGSTI, therefore, GSTIN cannot become universal, as IEC is for import/export business. Further, DGFT recognizes only the corporate entity (single identity) and not individual transactions.


As a measure of ease of doing business, it has been decided to keep the identity of an entity uniform across the Ministries/Departments. Henceforth (with the implementation of GST), PAN of an entity will be used for the purpose of IEC, i.e., IEC will be issued by DGFT with the difference that it will be alpha numeric (instead of 10 digit numeric at present) and will be same as PAN of an entity. For new applicants, w.e.f. the notified date, application for IEC will be made to DGFT and applicant’s PAN will be authorized as IEC.


Further, for the existing IEC holders, necessary changes in the system are being carried out by DGFT so that their PAN becomes their IEC. DGFT system will undertake this migration and the existing IEC holders are not required to undertake any additional exercise in this regard. IEC holders are required to quote their PAN (in place of existing IEC) in all their future documentation, w.e.f. the notified date. The legacy data which is based on IEC would be converted into PAN based in due course of time.


Members are requested to take note of the same.  For downloading the above said TN, you may use below link-
http://dgft.gov.in/Exim/2000/TN/TN17/TN0918.pdf


Thanking You,


Yours faithfully,

 

(S.G. BHARADI)
Executive Director
CHEMEXCIL

 

 

 

 

 

 

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